- Nigeria and Japan launch a $50 million fund to support local startups tackling social challenges.
- Fund targets early-stage startups in agriculture, healthcare, clean energy, and other critical sectors.
- JICA and NSIA collaborate to provide grant funding and matching capital for Nigerian entrepreneurs.
The Federal Government of Nigeria, in partnership with the Japan International Cooperation Agency (JICA), has launched a $50 million Impact Innovation Fund which will support Nigeria's growing startup ecosystem and help entrepreneurs who address critical social issues.
The agreement was finalised at a signing ceremony which took place in Abuja at the Ministry of Budget and Economic Planning where officials from the Nigeria Sovereign Investment Authority and JICA presented their plan to raise initial funding for businesses with substantial social impact.
The initiative requires JICA to provide $14 million in grant funding while the NSIA will match this amount by providing up to $20 million which will be supplemented by additional funding over time.
The fund operates as an onshore public investment vehicle which combines patient capital with technical support to create its investment structure.
The organization provides assistance to pre-seed and seed and early-stage startups by helping them develop their products and grow their business operations and enter new markets which have a direct impact on citizens' daily lives.
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The fund will focus its resources on startups that work to solve fundamental development challenges which include agriculture and healthcare and education and clean energy and waste management and water supply.
The initiative aims to create new employment opportunities while enhancing peopleGÇÖs living standards and driving sustainable economic development throughout Nigeria.
At the ceremony, officials introduced the new fund as a groundbreaking development that will change the entire innovation system of the nation.
The NSIA Managing Director and CEO explained that young entrepreneurs need accessible funding which will help them develop solutions that address local community needs.
The ambassador of Japan announced that the project forms part of a larger cooperation agreement and represents the first global development finance model which combines public funding with private investment to create social benefits.
The fund will begin its operations after current preparations finish and after the team builds its business network of qualified startups. Stakeholders expect the initiative to strengthen Nigeria's startup ecosystem while creating a model for innovation-based development that other regions can use.